Is SiriusXM Headed To $2.27?
You see, we get the bullish news from SiriusXM and writers that are bullish on the company. We all understand the longer term prospects of the company and that it will generate substantial cash in the years to come. I in fact have a 1 year price target of $3.25 on SiriusXM pending an update of guidance and some clarity on the situation with Liberty.
Setting all of that aside, today this equity closed in the $2.30’s on average volume. The next level of strong support sits at $2.27. Is SiriusXM headed there? Several times a week I write technical reports on this equity for members of SiriusBuzz Premium. Members to the premium service get analysis and updates that simply are not available anywhere else. They also get regular updates that allow them to better understand the various dynamics at play in the world of satellite radio. The technical report for today has already been published, and SiriusBuzz Premium members already have some research to work with as they plan their respective strategies.
Today’s technical update asked the very real question as to whether, in the short term, SiriusXM will test the $2.20’s. This does not mean I am a bear. It does not mean that I want to instill fear in investors, nor does it mean I am changing my overall outlook. All it means is that there is a very real potential, from a technical standpoint, that SiriusXM could test waters below current levels. It is not bad, unless you are not prepared for it. Long term holders will continue to be long and strong. Traders are interested in these dynamics, or those looking to enter a position or add to one.
From a technical standpoint I see $2.27 as a very real possibility. Why? You have to be a SiriusBuzz Premium member to know that.
Liberty converted half its preferred. Doesn’t that change things?
Not really…..
It does give liberty more voting power. It also may be a signal that they are about done with open market purchases.
I disagree spence-Liberty will keep buying beyond 50%
My guess is because of addl buying required from mels
sales, etc.
Dan…..
If liberty gains control, as measured by the sec, then why would liberty use it’s own cash to go to 54% when a share buyback using Sirius xm cash can accomplish that for them? It is what liberty did with direct tv, and I see them oing it again.
That 5% is 750 million dollars! I see liberty letting Sirius xm get them to a level to insulate them from dilution.
I bet they buy another 70 – 100m shares to get themselves securely at 50%. Remember Mel is selling a 30M lot this week, so they have to at least eat up that and more to get to 50% +. Mel may have started selling today and might be completing tomorrow/ Wednesday is my guess. Stock could hit the 2.27 area with this and the fear of the preferred stake conversion implications.
well looks like its going the opposite direction of 2.27 today its at 2.42! someones gotta be buting up a bunch of shares!!!!